The table set out the demand and supply schedule for banana

PriceQuantityQuantity

DemandSupply

(Boxes a week)

65004000

510003500

415003000

320002500

225002000

13000800

a) Draw the graph of the market of banana. What are the equilibrium price and quantity. Explain why ?

b)If the prive of bananna was $1.50 a box. What would be the situation in the banana market . Explain why and how the price and quantity would adjust .

C)

Suppose a cyclone destroyed some banana farms in QLD and quantity of banana supplied decrease by 500 boxes a week ateach price.Explain what would happen to the market supply and demand and how would the equilibrium price and quantity adjust ? Illustrate the change on your graph .